1. What factors contributed to EuroDisney’s poor performance during its first year of operation? The plan was to make the most amazing Disneyland theme park they had ever built although during the year that it was opened 1992 the park lost money in excess of $900 million. The Company failed to adapt its theme in direct correlation to its consumer with regards to cultural adaption. Even though it is an American company Disney should have definitely done things the way residents of that area believed to be culturally acceptable. A perfect example of this would be, not wanting to sell alcohol throughout the theme park, when it was as stated unthinkable in their culture not to have a glass of wine with their noon meal. Another thing that would apply to its poor performance accurately attaining a statistic that reveals how long people stay at the park. They didn’t find out until afterword that they would only stay for a maximum of 2 days. While they assumed that a normal stay at one of the theme park hotels who be similar to Americans, three days or more. Europeans also didn’t willingly spend more than $280 per day needed to enjoy the theme park attractions. Lastly their was a consumer shortage do to other leading world events going on. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by either EuroDisney or the parent company, Disney? I believe that it most definitely is not a simple task to go about knowing what steps to take in developing such an immense theme park that has to appeal to millions of people to keep it profitable. Although I do however believe that, the tremendously successful Disneyland in Japan blinded Disney’s management team. Most of the Euro Disney mistakes where fo... ... middle of paper ... ...e relates to the Japanese fanatic desire to assimilate everything that Americans do. The there is the high demand for exportation of agricultural goods that is slowly but steadily increasing their monetary spending power. 9. Given your choice of locale X for the newest Disneyland, what are the operational implicational of the history of EuroDisney and Disney Hong Kong for the new park? I believe that Disney will expand in a more strategically way, having gained the experience with the opening of Euro Disney and Hong Kong. Their Corporation will expand taking into account all of their previous mistakes in the past. They also have to take in the importance of advertisement, such as the opening of new and improved rides. They also have to have a well-developed strategy to open its new parks with out the outrageous losses they suffered in the opening of EuroDisney.
Disneyland marked the onset of theme parks in the nation, which was carved out of a fantasy tale and it has been the leader for 60 years. And, there was virtually no competition to the attraction quotient that attracted people and tourists to visit the theme park.
As financial consultants, we have been asked by Walt Disney’s management to provide an evaluation of this alternative to the company for this financing decision. For this estimate, we have reviewed the data of the Consolidated Income Statements from 1982 to 1983, the Consolidated Balance Sheets of 1984 and 1983, the Historical Summary of Average Yen/Dollar Exchange Rates and Price Indexes, ECU/Yen Swap flows in the following ten years, Yen Long-dated foreign exchange forward, Cash flow of 10-year ECU Euro bonds with sinking fund (Exhibit 6), and also the list of the French Utility’s outstanding publicly Traded Eurobonds.
Sparked Walt Disney World in Florida in 1971, Tokyo Disney Resort in Japan in 1983, Euro Disney in Paris in 1992, Hong Kong Disneyland Resort in 2005 and finally Shanghai Disneyland Resort, which is opening in June 2016 (Dehrer). Walt Disney hosted the opening of Disneyland in June 17, 1955 even with all the chaos he managed to give one last sliver of hope to those yet to experience the magic of it all “ To all who come to this happy place: Welcome. Disneyland is your land. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America, with the hope that it will be a source of joy and inspiration to all the world.” (Bryman
The Business Lessons behind Disneys Magicalexperiences Comments. N.p., 06 July 2013. Web. 01 Dec. 2013. .
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
(1) Michel G. Rukstad, David Collis; The Walt Disney Company: The Entertainment King; Harvard Business School; 9-701-035; Rev. January 5, 2009
This paper will assess the corporate culture of Walt Disney, addressing the background of the organization, training and teaching, stories, legends and myths associated with the company, philosophy, values, mission statement and the organizational goals of the company.
Comparing the size of Disney’s theme parks to that of a shopping store this can be a little harder to accomplish. Each area of the theme park must be broken down and managed, like different departments within a department store, only on a much larger level. When the theme park will open, when shifts will start and end, how many street vendors will be in the park and where, and how long rides will last. These are all things that need to be planned so the company can reach a larger goal. So how Disney’s theme parks are managed would be part of their operational strategy.
Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).
amounts of equity (Disney and Government) as well as with subordinated debt (Government), Disney had
In exhibit 3 we can see a presentation of the different business lines of Disney, and we believe that this can be used to describe the interrelationships between the businesses. All the different businesses are put together under one roof to promote the brand ?Disney?...
In addition, one weakness that can be concluded from the case study is Euro Disney’s ineffective marketing team when entering the European market. In fact, it is a failure of its marketing team to quickly react to the threatening environmental signals and especially predicting them before entering and positioning itself in the European market.
That is to say, Hong Kong Disneyland offers a uniquely western experience within the confines of Asia. The perception of Hong Kong Disneyland as a global brand can vary depending on the social groups that each consumer identifies as. Mainland Chinese visitors that are unaccustomed to western culture and modernity can feel as though they’ve stepped into a separate western sanctuary where they can fully experience another way of life. The more modern and westernised Hong Kong Chinese visiting the park are able to enjoy their visit in a relaxing
Connellan, Thomas K. Inside the Magic Kingdom: Seven Keys to Disney's Success. Austin, TX: Bard, 1997. Print.
Through the ratio analysis, we can conclude that Disney is a stable company, keeping up with industry trends and up to par with industry averages. Although at times it can seem that Disney is a risky and unstable company, those conclusions are false since the unstableness has come through decisions which will better establish Disney’s position on the market. Although Disney’s competition, namely CBS, is on a similar standing as Disney when comparing ratios, Disney will manage to remain the largest media conglomerate in the USA and one of the best corporations in the world.